Boston-based law firm Markham & Read today announced that in the case of
Bruce Cahill et. al. versus Paul Pejman Edalat et. al. (U.S. Federal
Court Docket: 8:16-cv-00686), a federal jury has determined that Edalat
deliberately acted with oppression, fraud or malice toward Cahill, the
former CEO by of Pharma Pak, Inc. who claimed Edalat had launched a
smear campaign against him on social media over a year-long period.

The jury issued an award of $600,000 in damages suffered by Cahill and
ruled that Edalat is liable for punitive damages. A hearing will take
place in U.S. District Court, Central District of California (Santa Ana
division) on August 22nd to determine the extent of punitive
damages.

The jury also found that Edalat was liable for damages to Pharma Pak
investors Greg Cullen, Ron Franco and Shane Scott.

“We are pleased that the jury sent a clear message to Paul Edalat while
fully supporting Bruce Cahill and his longstanding good reputation in
the community,” said John J. Markham, attorney for Cahill and the Pharma
Pak investors. “The verdict and resulting damages are proof positive
that Mr. Cahill was completely vindicated against Edalat’s unscrupulous
actions and defamatory statements, along with others who the jury
determined were damaged by Edalat.”

During the trial, Markham and attorney Bridget A. Zerner set forth
evidence and testimony showing that Edalat induced more than $4 million
of investment into Pharma Pak from Cahill, Cullen, Franco, Scott and
others by making numerous claims regarding the company’s value, its
intellectual property, its existing customer base and roster of
prospective clients.

Throughout the proceedings, jurors heard direct evidence that Edalat, an
Orange County native who previously filed bankruptcy in Southern
California (U.S. Bankruptcy Court Docket: 8:14-bk-14529-TA) and in 2014
was “permanently restrained and enjoined … from directly or indirectly
manufacturing, preparing, packing, labeling, holding, or distributing
any dietary supplements” by the U.S. District Court for the Central
District of California (U.S. Federal Court Docket: SACV 14-01759-JLS),
used investment money to pay for gambling debts in Las Vegas and other
lavish expenses. They also reviewed many postings Edalat made on social
media regarding the former Pharma Pak CEO’s personal life, which formed
the basis of Mr. Cahill’s claims in court that Edalat sought to defame
him after litigation was filed in federal court.

Further, the jury ruled that Edalat’s co-defendant, Olivia Karpinski,
was liable for $11,000 in damages to Cahill based on defamatory claims
she made on social media.

During the trial, the jury heard the testimony of an Irvine police
officer that discredited Karpinski’s attempt to falsely claim that she
was a victim of sexual battery. Karpinski went to the Irvine Police
Department on October 13, 2016, the day before she was deposed in the
case and filed a report (Irvine CA Police Department Record #16-15720)
claiming she was the victim of “stalking” and returned to the station
two hours later to make an additional claim of sexual battery. According
to the report, the officer explained her account was not sexual battery
and questioned why she waited 11 months to report the
allegations. Karpinski had previously posted the false battery claims
against Cahill on her Instagram account, where they remained visible to
the public for several months.

“As an entrepreneur and philanthropist in Southern California for over
30 years, I am grateful that the jury acknowledged my reputation as an
honest, successful businessman in sectors such as technology,
semiconductors, publishing, and real estate industries,” said Cahill.
“I’m also pleased that they recognized the damages caused by the
numerous false claims and defamatory statements made against me by Paul
Edalat.”